Nestle looks to resume Maggi production at all plants

On Monday, a company spokesperson said that Nestle has resumed production at three plants situated in Karnataka, Punjab and Goa.

Having resumed production of Maggi noodles at three plants, Nestle India on Tuesday said it is in talks with state authorities concerned to start manufacturing of the product at other facilities also.

Nestle has resumed manufacturing of Maggi Noodles at three of its plants at Nanjangud (Karnataka), Moga (Punjab) and Bicholim (Goa).

"In compliance with the orders of the High Court of Bombay, fresh samples from these newly manufactured batches will be sent for testing to the three accredited laboratories mandated by the High Court," Nestle said in a communique to the Bombay Stock Exchange.

The company, however, informed BSE that it will ‘commence sale of Maggi noodles only after clearance from these three laboratories’.

The stock exchange had sought clarification from the company over media reports on resumption of Maggi noodles manufacture.

It further said that the company is ‘engaging with the relevant state authorities and other stakeholders at other manufacturing locations to commence manufacture at the Earliest’.

On Monday, a company spokesperson said that Nestle has resumed production at three plants situated in Karnataka, Punjab and Goa.

Nestle India was forced to withdraw Maggi from market and stop production in June following tests by certain labs allegedly finding lead and MSG beyond permissible limits.

In June, the Food Safety and Standards Authority of India had banned Maggi noodle product saying it was ‘unsafe and hazardous’ for consumption after finding lead levels beyond permissible limits.

The company had withdrawn the instant noodle brand from the market.

Nestle India, took a hit of Rs 450 crore (Rs 4.5 billion), including destroying over 30,000 tonnes of the instant noodles since June when it was banned.

However, the company has said that it would continue with the existing formula of the product and would not change the ingredients.

The Consumer Affairs Ministry had also filed a class action suit against Nestle India seeking about Rs 640 crore (Rs 6.4 billion) in damages for alleged unfair trade practices, false labeling and misleading advertisements.

Following the maggi ban, Nestle India had reported a standalone loss of Rs 64.40 crore (Rs 644 million) for the quarter ended June 30, 2015, its first quarterly loss in over three decades.

It had posted a net profit of Rs 287.86 crore (Rs 2.87 billion) during the April-June quarter of 2014-15.